Nomae Expats
Relocation

Relocation — 1.2

Incorporation

GK or KK — the decision most people get wrong. Real costs, real timelines, and the banking sequencing that nobody explains upfront.

¥1

Minimum capital required

¥100k

Practical minimum (GK)

¥1M+

Practical minimum (KK)

2–4 weeks

Timeline to register

GK vs KK: The Real Decision

Japan has two primary company structures used by small businesses and startups: the Godo Kaisha (GK) and the Kabushiki Kaisha (KK). Both can be formed with ¥1 in capital since the 2006 Companies Act reform — but that number is misleading. The real decision is about governance, credibility, and exit strategy.

FactorGK (Godo Kaisha)KK (Kabushiki Kaisha)
Analogous toLLCCorporation / Ltd
Notary fees¥40,000–60,000¥100,000–150,000
Registration tax¥60,000¥150,000
Total formation cost¥100,000–200,000¥250,000–400,000
GovernanceMember-managed, flexibleBoard-driven, structured
Raising investmentNot suitableStandard path
Bank account difficultyHigherStandard
Enterprise client credibilitySometimes questionedUniversally accepted
Profit distributionFlexible to membersVia dividends only
Best forSolo operators, consultants, service businessesVC-backed, enterprise B2B, public ambitions

The honest answer

If you are not raising venture capital and are not selling to large Japanese enterprises where procurement teams vet supplier structure, a GK is cheaper, faster, and structurally adequate. You can always convert to a KK later — it requires a legal process but is not catastrophic.

Real Costs

GK formation

  • Articles of incorporation (定款): prepared by you or a gyoseishoshi (行政書士) — ¥0 to ¥50,000
  • No notarization required for GK (unlike KK) — this saves ~¥50,000

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The strategy, sequencing, and optimization details below are available to members.

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Real Costs

GK formation

  • Articles of incorporation (定款): prepared by you or a gyoseishoshi (行政書士) — ¥0 to ¥50,000
  • No notarization required for GK (unlike KK) — this saves ~¥50,000
  • Registration tax (登録免許税): ¥60,000 flat
  • Company seal (代表社印): ¥3,000–20,000 depending on material
  • Gyoseishoshi / shiho shoshi fee if using a professional: ¥50,000–100,000
  • Total realistic range: ¥120,000–230,000

KK formation

  • Articles of incorporation: must be notarized — notary fee ¥30,000–50,000 (based on capital amount; electronic 定款 reduces cost)
  • Registration tax: ¥150,000 flat (or 0.7% of capital, whichever is higher)
  • Company seal: ¥3,000–20,000
  • Shiho shoshi fee if using a professional: ¥80,000–150,000
  • Total realistic range: ¥280,000–480,000

Ongoing costs (both structures)

  • Resident tax on the company: ¥70,000/year minimum even if zero revenue
  • Accounting / bookkeeping: ¥30,000–80,000/month depending on complexity
  • Social insurance (if you employ yourself): roughly 30% of salary on top
  • Corporate tax return filing: ¥100,000–200,000/year if outsourced

Timeline

  1. 01

    Secure a registered address

    Your company address must exist before registration. Virtual offices are accepted — expect ¥3,000–15,000/month. Use a co-working space with a legitimate mail handling service.

  2. 02

    Prepare articles of incorporation

    Draft or commission the 定款. For GK, no notarization needed. For KK, book a notary appointment — these often take 1–2 weeks to schedule.

  3. 03

    Prepare company seal

    Order online — 3–7 days delivery. You need at minimum the representative seal (代表社印) and ideally a company stamp (角印) and bank seal (銀行印).

  4. 04

    File at the Legal Affairs Bureau

    Submit registration documents to the nearest 法務局. Processing takes 7–10 business days. Pay the registration tax via revenue stamps purchased at the bureau.

  5. 05

    Register for taxes

    Within 2 months of incorporation, submit notification to the national tax authority (税務署) and your prefecture/municipality. Your accountant should handle this.

  6. 06

    Open a corporate bank account

    The most friction-heavy step. Start immediately after registration — it can take 1–3 months to complete. See banking guide.

Banking Sequencing

This is where most people hit an unexpected wall. Banks in Japan are conservative about opening corporate accounts for newly formed companies — especially those with foreign directors. The concern is money laundering risk. You cannot rush this.

  • Apply to multiple banks simultaneously — rejection from one does not affect others
  • PayPay Bank (formerly Japan Net Bank), SBI Business Bank, and GMO Aozora are significantly more foreigner-friendly than major city banks
  • Major banks (SMBC, MUFG, Mizuho) will typically require 6+ months of business history for foreign-led companies
  • Prepare a full business plan, client contracts if available, and personal identification for all directors
  • In-person interview at the branch is usually required — bring your residence card, corporate registration certificate (登記事項証明書), and all seal registration documents

Important

Do not use your registered address as a virtual office from a provider that other flagged companies have used. Banks cross-reference addresses. If your address appears on a known list, your application will be rejected outright without explanation. Use established providers: Regus, Servcorp, WeWork, or an accountant's office address.

Capital Strategy

The minimum viable capital for a Business Manager visa application is ¥30,000,000 (as of October 2025 — see Visa Strategy for the full updated requirements). This is paid-in capital — it sits in your corporate account and can be used for business operations. It is not locked away.

For a GK without visa requirements, ¥100,000–500,000 is a reasonable starting capital. Undercapitalization can be a flag during bank account applications and enterprise contract vetting.

Practical recommendation

Capitalize at ¥1,000,000–3,000,000 for a service business GK not requiring a visa. It signals seriousness to banks and clients without triggering higher registration taxes.

Consulting

If your situation is complex or you want a second opinion on strategy, we can help directly.

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